Raghavan Nambath Menon Vs ITO (ITAT Bangalore)
The appeal arose from a reassessment order dated 17.12.2024 passed under sections 147 read with 144C(13) of the Income Tax Act, 1961 for Assessment Year (AY) 2015–16. The assessee, a non-resident, had not filed a return originally on the ground that his Indian income was below the basic exemption limit. Upon receipt of notice under section 148 dated 19.04.2022, he filed a return declaring total income of ₹1,91,920.
The reassessment was initiated based on information received through the Insight Portal under the Risk Management Strategy (RMS). The data reflected cash deposits in a savings account, time deposits, and property transactions. The Assessing Officer (AO) invoked section 147 and ultimately added ₹10,12,160 under section 68 as unexplained cash credits, completing the assessment at ₹12,04,080.
Before the Tribunal, the assessee challenged the reassessment primarily on legal grounds, contending that the notice under section 148 dated 19.04.2022 was barred by limitation. It was argued that under the unamended section 149(1)(b), the last date for issuing notice for AY 2015–16 was 31.03.2022 (six years from the end of the assessment year). Even after considering exclusions under the provisos to section 149(1), the last permissible date was 18.04.2022, whereas the notice was issued on 19.04.2022.
